September 29, 2022

Markets:

Stock futures slumped Thursday, putting the major averages on track to give back some of the sharp gains seen in the previous session.

The moves followed a broad rally for stocks a day earlier, as the Bank of England said it would purchase bonds in an effort to help steady its financial markets and the cratering British pound. Sterling has stooped to record lows against the U.S. dollar in recent days.

It marked a stark shift from the aggressive tightening campaign many global central banks have undertaken to cope with surging inflation.

Wednesday’s rally put the major averages on pace to eke out small gains for the week, but they are still on track to cap off their worst month since June. The Nasdaq Composite is leading the monthly losses, down about 6.5%, while the Dow and S&P are on pace to close 5.8% and 5.9% lower, respectively.

European stocks fell on Thursday as the initial reprieve after the Bank of England stepped in to calm the markets seemingly faded.

The 10-year yield inched back up to 3.848% after dropping 25 basis points, or the most since 2020 overnight in the U.S.

The yields on the 5-year Treasury note and the 7-year Treasury note were up — as high as 4.085% and 3.986% respectively.

Portfolio:

We enter the new trading session holding positions in MPW, Z, TDOC, and AA. Historically, October, has been a strong month when in a mid-term election cycle. We actually do think we have an opportunity to run higher in October and leading into mid-terms. Personally, we cannot wait to see how the markets trade the first week of the month and the trend lines we provided last week. 3720 was an absolute wall for take S&P to build above and hold yesterday. We need to see a close above that trend line for us. But, opportunities are igniting and longer term we have outstanding set-ups developing. I'll repeat this one more time; end of year cycle could be a monster if this plays out as expected! Be ready today.